Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1826


Introduced by Assembly Member Mark Stone

February 8, 2016


An act tobegin delete amend Section 46000end deletebegin insert repeal and add Chapter 10 (commencing with Section 46000) of Division 17end insert of the Food and Agricultural Code,begin insert and to amend Sections 110810, 110812, 110860, 110920, and 110925 of, to repeal Section 110870 of, and to repeal and add Sections 110815, 110875, and 110958 of, the Health and Safety Code,end insert relating to organicbegin delete foods.end deletebegin insert products.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1826, as amended, Mark Stone. Organicbegin delete foodend delete products.

begin insert

Existing law, the California Organic Products Act of 2003 (the act), requires the Secretary of Food and Agriculture, county agricultural commissioners under the supervision and direction of the secretary, and the Director of the State Department of Public Health to enforce federal regulations governing the production, labeling, and marketing of organic products, as specified. The act requires certain persons engaged in the production, processing, or handling of organic products to annually register and pay a fee, as specified, and imposes penalties for specified violations of the act.

end insert
begin insert

Existing federal law establishes the National Organic Program which requires operations that produce or handle organic agricultural products to comply with federal organic standards and be certified by a certifying agent, as specified.

end insert
begin insert

This bill would revise and recast the California Organic Products Act of 2003 as the California Organic Food and Farming Act. The bill would specify that a person certified pursuant to the National Organic Program shall be deemed registered for purposes of the state organic program and that those operations do not require additional registration under the state law. The bill would require all other persons engaged in the production or handling of raw agricultural products sold as organic and retailers engaged in the production and processing of organic products to register with the county agricultural commissioner in the county of principal operation. The bill would require the secretary, in consultation with the California Organic Products Advisory Committee, to establish a registration fee for producers, handlers, retail food establishments, and certifying agents, and would authorize the secretary to establish an annual fee for the purpose of funding activities authorized under the act based on gross annual organic sales. To the extent this bill would impose additional duties on county agricultural commissioners, the bill would impose a state-mandated local program.

end insert
begin insert

The bill would require the secretary to establish a memorandum of understanding with the director to assist in administering the state organic program, would authorize the secretary to establish procedures for and conduct specified activities to supplement enforcement of National Organic Program standards, as specified, and to use state organic program funds to conduct specified activities.

end insert
begin insert

Existing law requires the director to enforce regulations promulgated by the National Organic Program relating to organic products.

end insert
begin insert

This bill would state that certification under the National Organic Program shall be deemed registration for purposes of the state organic program. The bill would require fees and penalties collected pursuant to the act for those purposes to be deposited into a separate subaccount of the Food Safety Account rather than the General Fund. The bill would revise information that the director is required to annually compile, publish, and submit to the California Organic Products Advisory Committee.

end insert
begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

end insert
begin delete

Existing law requires the Secretary of Food and Agriculture and county agricultural commissioners, under the direction of the secretary, to enforce regulations adopted by the federal National Organic Program (NOP) and the California Organic Products Act of 2003 applicable to any person selling products as organic.

end delete
begin delete

This bill would make nonsubstantive changes in that provision.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertThe Legislature finds and declares all of the
2following:end insert

begin insert

3(a) The state organic program was first established under the
4California Organic Products Act of 1990 and amended in the
5California Organic Products Act of 2003. The state organic
6program was developed before and during the development of
7federal organic standards. Today, a robust federal organic
8certification and enforcement program exists.

end insert
begin insert

9(b) As a result of the state organic program, California certified
10organic producers pay more fees, are subject to duplicate
11registration and extra documentation, and are required to comply
12with more regulation than producers outside of California to use
13the same organic label.

end insert
begin insert

14(c) As a result of the state organic program, the National
15Organic Program focuses its enforcement funds outside of
16California, and it relies on the state organic program’s additional
17fees on California producers to fund enforcement in California.

end insert
begin insert

18(d) The purpose of amending the existing law governing the
19state organic program is to reform fees and paperwork and to
20create a framework whereby state organic program enforcement
21activities are designed to supplement National Organic
22Program-funded enforcement in California.

end insert
23begin insert

begin insertSEC. 2.end insert  

end insert

begin insertChapter 10 (commencing with Section 46000) of
24Division 17 of the end insert
begin insertFood and Agricultural Codeend insertbegin insert is repealed.end insert

25begin insert

begin insertSEC. 3.end insert  

end insert

begin insertChapter 10 (commencing with Section 46000) is added
26to Division 17 of the end insert
begin insertFood and Agricultural Codeend insertbegin insert, to read:end insert

begin insert

P4    1 

2Chapter  begin insert10.end insert California Organic Food and Farming Act
3

3 

4Article begin insert1.end insert  General Provisions
5

 

6

begin insert46000.end insert  

(a) This chapter and Article 7 (commencing with
7Section 110810) of Chapter 5 of Part 5 of Division 104 of the
8Health and Safety Code shall be known and may be cited as the
9California Organic Food and Farming Act.

10(b) The secretary and county agricultural commissioners under
11the supervision and direction of the secretary shall enforce
12regulations adopted by the National Organic Program (NOP)
13(Section 6517 of the federal Organic Foods Production Act of
141990 (7 U.S.C. Sec. 6501 et seq.)), and Article 7 (commencing
15with Section 110810) of Chapter 5 of Part 5 of Division 104 of the
16Health and Safety Code and this act applicable to any person
17selling products as organic.

18(c) This chapter shall be interpreted in conjunction with Article
197 (commencing with Section 110810) of Chapter 5 of Part 5 of
20Division 104 of the Health and Safety Code and regulations
21adopted by the National Organic Program (Section 6517 of the
22federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501
23et seq.)).

24

begin insert46001.end insert  

For purposes of this act, the following terms have the
25following meanings:

26(a) “Accredited certification agency” means an entity accredited
27by the United States Department of Agriculture to certify
28operations as compliant with the federal organic standards.

29(b) “Act” means the California Organic Food and Farming
30Act.

31(c) “Categorical products” means categories of products of
32like commodity such as apples and salad products, and does not
33require variety specific information.

34(d) “Certified operation” means a producer, handler, or retail
35food establishment that is certified organic by an accredited
36certification agency as authorized by the federal Organic Foods
37Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.) and
38implemented pursuant to the National Organic Program.

P5    1(e) “Data” means the information provided annually by persons
2registered under the act, including certified organic acreage and
3gross sales of certified organic products.

4(f) “Department” means the State Department of Public Health.

5(g) “Director” means the director and State Public Health
6Officer for the State Department of Public Health.

7(h) “Enforcement authority” means the governmental unit with
8primary enforcement jurisdiction, as provided in Section 46022.

9(i) “Exempt handler” means a handling operation that sells
10agricultural products as “organic” but whose gross agricultural
11income from organic sales totals five thousand dollars ($5,000)
12or less annually.

13(j) “Exempt operation” means a production or handling
14operation that sells agricultural products but is exempt from
15certification under federal organic standards.

16(k) “Exempt producer” means a production operation that sells
17agricultural products as “organic” but whose gross agricultural
18income from organic sales totals five thousand dollars ($5,000)
19or less annually.

20(l) “Federal organic standards” means the federal regulations
21governing production, labeling, and marketing of organic products
22as authorized by the federal Organic Foods Production Act of
231990 (7 U.S.C. Sec. 6501 et seq.) and implemented pursuant to
24the National Organic Program (7 C.F.R. Sec. 205 et seq.), and
25any amendments to the federal act or regulations made subsequent
26to the enactment of this chapter.

27(m) “Handle” means to sell, process, or package agricultural
28products.

29(n) “Handler” means any person engaged in the business of
30handling agricultural products, but does not include final retailers
31of agricultural products that do not process agricultural products.

32(o) “Handling operation” means any operation or portion of
33an operation, except final retailers of agricultural products that
34do not process agricultural products that (1) receives or otherwise
35acquires agricultural products, and (2) processes, packages, or
36stores agricultural products.

37(p) “Inspection” means the act of examining and evaluating a
38 production or handling operation to determine compliance with
39state and federal law.

P6    1(q) “National Organic Program” or “NOP” means the National
2Organic Program established pursuant to the federal Organic
3Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.) and the
4regulations adopted for implementation.

5(r) “Person” means any individual, firm, partnership, trust,
6corporation, limited liability company, company, estate, public or
7private institution, association, organization, group, city, county,
8city and county, political subdivision of this state, other
9governmental agency within the state, and any representative,
10agent, or agency of any of the foregoing.

11(s) “Processing” means cooking, baking, heating, drying,
12mixing, grinding, churning, separating, extracting, cutting,
13fermenting, eviscerating, preserving, dehydrating, freezing, or
14otherwise manufacturing, and includes packaging, canning,
15jarring, or otherwise enclosing food in a container.

16(t) “Producer” means a person who engages in the business of
17growing or producing food, fiber, feed, and other
18agricultural-based consumer products.

19(u) “Prohibited substance” means a substance the use of which
20in any aspect of organic production or handling is prohibited or
21not provided for in state or federal law.

22(v) “Residue testing” means an official or validated analytical
23procedure that detects, identifies, and measures the presence of
24chemical substances, their metabolites, or degradation products
25in or on raw or processed agricultural products.

26(w) “Retail food establishment” means a restaurant,
27delicatessen, bakery, grocery store, or any retail outlet with an
28in-store restaurant, delicatessen, bakery, salad bar, or other eat-in
29or carry-out service of processed or prepared raw and
30ready-to-eat-food.

31(x) “Secretary” means the Secretary of Food and Agriculture.

32(y) “USDA” means the United States Department of Agriculture.

33

begin insert46002.end insert  

(a) All organic food or product regulations and any
34amendments to those regulations adopted pursuant to the federal
35Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et
36seq.), that are in effect on the date this act is enacted or that are
37adopted after that date, shall be the organic food and product
38regulations of this state.

P7    1(b) The secretary may, by regulation, prescribe conditions under
2which organic foods or other products not addressed by the
3National Organic Program may be sold in this state.

4(c) The purpose of the state organic program shall be to do the
5following:

6(1) Supplement the National Organic Program enforcement of
7federal organic standards.

8(2) Promote coordination of federal, state, and local agencies
9in implementation of the National Organic Program.

10(3) Expand, improve, and protect the production of organic
11products.

12(4) Assist operations in achieving organic certification.

13(5) Provide technical assistance, education, outreach, and
14guidance to the organic industry.

15(d) The secretary may receive and expend state and federal
16funds for activities authorized under this act.

17 

18Article begin insert2.end insert  Administration
19

 

20

begin insert46011.end insert  

(a) The secretary shall establish a memorandum of
21understanding with the director to assist in the administration of
22the state organic program and responsibilities authorized under
23this act.

24(b) The secretary may contract with county agricultural
25commissioners to implement this act.

26

begin insert46012.end insert  

(a) To the extent that funds are available, the secretary,
27in consultation with the advisory committee established pursuant
28to Section 46014, may establish procedures for and conduct the
29following activities to supplement enforcement of NOP standards
30in the state:

31(1) Receive and investigate complaints filed by any person
32concerning suspected acts of noncompliance with this act or federal
33organic standards.

34(2) Conduct periodic spot inspections.

35(3) Conduct periodic prohibited material testing on products
36labeled as organic to supplement the Department of Pesticide
37Regulation residue testing program authorized in Section 12532,
38the pesticide residue monitoring program on processed foods
39authorized by Article 1 (commencing with Section 110425) of
P8    1Chapter 5 of Part 5 of Division 104 of the Health and Safety Code,
2and annual testing conducted by accredited certification agencies.

3(4) Conduct farmers’ market inspections to supplement those
4conducted under the certified farmers’ market program pursuant
5to Chapter 10.5 (commencing with Section 47000).

6(b) Investigation, inspection, and prohibited material testing
7reports shall be forwarded to the secretary or to NOP for any
8required enforcement action.

9(c) The secretary shall coordinate state organic program
10activities authorized under this section with other county and state
11licensing, registration, inspection, and fee collection procedures
12applicable to registrants.

13

begin insert46013.end insert  

To the extent funds are available, the secretary may,
14in consultation with the advisory committee, use state organic
15program funds to conduct the following activities:

16(a) Expand, improve, and protect the production of organic
17products.

18(b) Assist operations in achieving organic certification,
19including transition to organic.

20(c) Provide technical assistance, education, outreach, and
21guidance to the organic industry.

22

begin insert46014.end insert  

(a) The secretary shall establish an advisory committee,
23which shall be known as the California Organic Products Advisory
24Committee, for the purpose of advising the secretary with respect
25to his or her responsibilities under this act and Article 7
26(commencing with Section 110810) of Chapter 5 of Part 5 of
27Division 104 of the Health and Safety Code.

28(b) An advisory committee established under this chapter shall
29also advise the secretary, the University of California, and the
30California State University on education, outreach, and technical
31assistance for organic producers.

32(c) The advisory committee shall be comprised of 16 members
33as follows:

34(1) Six members shall be producers, at least one of whom shall
35be a producer of meat, fowl, fish, dairy products, or eggs.

36(2) Two members shall be processors.

37(3) One member shall be a wholesale distributor.

38(4) One member shall be a representative of an accredited
39certification agency operating in the state.

40(5) One member shall be a consumer representatives.

P9    1(6) One member shall be an environmental representative.

2(7) Two members shall be technical representatives with
3scientific credentials related to agriculture or food science.

4(8) One member shall be a food retail establishment
5representative.

6(9) One member shall be a representative from the University
7of California or California State University system.

8(d) Except for the accredited certification agency, consumer,
9environmental, technical, and University of California or
10California State University system representatives, the members
11of the advisory committee shall have derived a substantial portion
12of their business income, wages, or salary as a result of services
13they provide that directly result in the production, handling,
14processing, or retailing of products sold as organic for at least
15three years preceding their appointment to the advisory committee.

16(e) The consumer and environmental representatives shall not
17have a financial interest in the direct sales or marketing of the
18organic product industry and shall be members or employees of
19representatives of recognized nonprofit organizations whose
20principal purpose is the protection of consumer health or
21protection of the environment.

22(f) The technical and University of California or California
23State University system representatives shall not have a financial
24interest in the production, handling, processing, or marketing of
25the organic products industry. The technical and university system
26representatives may be involved in organic research or technical
27review providing they have no financial benefit from results of the
28research project or technical review.

29(g) (1) Each member of the committee may have an alternate
30who satisfies the same requirements as the member.

31(2) An alternate member shall serve at an advisory committee
32meeting only in the absence of, and shall have the same powers
33and duties as, the category whom he or she is representing as
34alternate, except for duties and powers as an officer of the
35committee. The number of alternates present who are not serving
36in the capacity of a member shall not be considered in determining
37a quorum.

38(3) An alternate member may serve at an advisory committee
39subcommittee meeting only in the absence of, and shall have the
40same powers and duties as, the member whom he or she is
P10   1designated as alternate, except for duties and powers as a
2subcommittee chairperson.

3(h) The members of the advisory committee and their alternates
4shall be reimbursed for the reasonable expenses actually incurred
5in the performance of their duties, as determined by the advisory
6committee and approved by the secretary. The secretary may
7authorize payment of per diem to each attendee based on a
8recommendation of the advisory committee.

9(i) The secretary or his or her representative, the director or
10his or her representative, the director of the Department of
11Pesticide Regulation or his or her representative, and a county
12agricultural commissioner may serve as ex officio members of the
13advisory committee.

14(j) The advisory committee shall review and make
15recommendations to the secretary and the director on the state
16organic program budget, including all fee revenues and penalties
17assessed from exempt operations, accredited certification agencies,
18and retail food establishments, and all expenses of the program.

19(k) The advisory committee shall meet at least two times
20annually and submit an annual report to the secretary that
21 summarizes issues for organic agriculture and food production in
22the state.

23 

24Article begin insert3.end insert  Registration
25

 

26

begin insert46021.end insert  

(a) Except as specified in subdivision (b), a person
27engaged in this state in the production or handling of raw
28agricultural products sold as organic, and retailers that are
29engaged in the production of products sold as organic, and
30retailers that are engaged in the processing, as defined by the
31NOP, of products sold as organic, shall register with the county
32agricultural commissioner in the county of principal operation
33before the first sale of the product. All processors of organic
34agriculturally derived products that are not required to be
35registered with the director under Article 7 (commencing with
36Section 110810) of Chapter 5 of Part 5 of Division 104 of the
37Health and Safety Code shall register with the secretary. Each
38registrant shall provide a complete copy of its registration to the
39county agricultural commissioner in any county in which the
40registrant operates.

P11   1(b) A person certified under the National Organic Program
2shall be deemed registered and shall not be required to register
3pursuant to subdivision (a).

4(c) The secretary, in consultation with the advisory committee,
5shall establish procedures for registration and information
6required for registration.

7(d) Registration pursuant to this section shall be valid for one
8year and shall be renewed annually.

9

begin insert46022.end insert  

(a) This act shall not apply to the term “natural” when
10used in the labeling or advertising of a product.

11(b) This act also applies to seed, fiber, and horticultural
12products. The terms “foods” and “raw agricultural commodities”
13as used in this chapter include seed, fiber, and horticultural
14products where the context requires to effectuate this section.

15(c) Article 14 (commencing with Section 43031) of Chapter 2
16applies to any food product that is represented as organically
17produced by any person who is not registered as required by this
18chapter or any product that is not in compliance with this chapter
19or Article 7 (commencing with Section 110810) of Chapter 5 of
20Part 5 of Division 104 of the Health and Safety Code. The
21secretary, county agricultural commissioners, and the director
22shall be considered enforcing officers for purposes of those
23provisions of law under their respective jurisdiction.

24

begin insert46023.end insert  

(a) To the extent feasible, the secretary shall coordinate
25the registration and fee collection procedures of this section with
26similar licensing or registration procedures applicable to
27registrants.

28(b) The secretary or county agricultural commissioner shall
29deny a registration submission that is incomplete or not in
30compliance with this act.

31(c) A registrant shall, within a reasonable time, notify the
32secretary of any change in the information reported on the
33registration form and shall pay any additional fee owed if that
34change results in a higher fee owed than that previously paid.

35(d) At the request of any person, the public information sheet
36for any registrant shall be made available for inspection and
37copying at the main office of the department and each county
38agricultural commissioner. Copies of the “public information
39sheet” shall also be made available by mail, upon written request.
40The secretary or county agricultural commissioner may charge a
P12   1reasonable fee for the cost of reproducing a “public information
2sheet.” Except as provided in this subdivision, a registration form
3is exempt from Chapter 3.5 (commencing with Section 6250) of
4Division 7 of Title 1 of the Government Code.

5(e) The secretary, in consultation with the California Organic
6Products Advisory Committee, may suspend the registration
7program set forth in this section if the secretary determines that
8income derived from registration fees is insufficient to support a
9registration enforcement program.

10(f) A registration is considered legal and valid until revoked,
11suspended, or until the expiration of the registration.

12(g) The registration revocation process shall be in conjunction
13with other provisions of this chapter. The secretary or county
14agricultural commissioner’s office may initiate the revocation
15process for failure to comply with the NOP or this act. Any person
16against whom the action is being taken shall have the opportunity
17to appeal the action and be afforded the opportunity to be heard
18in an administrative appeal. This appeal shall be administered by
19either the state or county agricultural commissioner’s office.

20(h) When the registration fee is not paid within 60 days from
21the expiration date, the account shall be considered closed and
22the registration voided. A notification shall be sent to the registrant
23and the certifier, if applicable, notifying them the registrant is no
24longer able to market products as organic until the account is paid
25in full.

26(i) Any producer, handler, processor, or certification agency
27subject to this chapter that does not pay the fee within 10 days of
28the date on which the fee is due and payable shall pay a penalty
29of 10 percent of the total amount determined to be due plus interest
30at the rate of 1.5 percent per month on the unpaid balance.

31

begin insert46024.end insert  

(a) Any certification organization that certifies product
32in this state sold as organic shall register with the secretary and
33shall thereafter annually renew the registration, unless the
34organization is no longer engaged in the activities requiring the
35registration. Registration shall be on a form provided by the
36secretary, and shall include a copy of accreditation by the USDA
37or proof of application, if applicable.

38(b) For the purpose of conducting activities authorized under
39this act, the secretary shall require certifying agents operating in
40the state to annually submit the information that it submits to the
P13   1NOP directly to the state organic program. The secretary shall
2accept the information in the same format that the certifying agent
3uses to submit information to the NOP.

4(c) Any registration submitted by a certification organization
5shall be made available to the public for inspection and copying.
6The secretary may audit the organization’s certification procedures
7and records at any time, but any records of the certification
8organization not otherwise required to be disclosed shall be kept
9confidential by the secretary.

10(d) The secretary and the county agricultural commissioners
11under the supervision of the secretary shall, if requested by a
12sufficient number of persons to cover the costs of the program in
13a county as determined by the secretary, establish a certification
14program. This program shall meet all of the requirements of this
15chapter. In addition, this program shall meet all of the
16requirements of the federal certification program, including federal
17accreditation. The secretary shall establish a fee schedule for
18participants in this program that covers all of the department’s
19reasonable costs of the program. A county agricultural
20commissioner that conducts a voluntary certification program
21pursuant to this section shall establish a fee schedule for
22participants in this program that covers all of the county’s
23reasonable costs of the program. The secretary may not expend
24funds obtained from registration fees collected under this chapter
25for the purposes of adopting or administering this program.

26(e) The certification fee authorized under subdivision (d) is due
27and payable on January 1 or may be prorated before the 10th day
28of the month following the month in which the decision to grant
29the certification is issued. Any person who does not pay the amount
30that is due within the required period shall pay the enforcement
31authority providing the certificate a penalty of 10 percent of the
32total amount determined to be due, plus interest at the rate of 1.5
33percent per month on the unpaid balance.

34

begin insert46025.end insert  

(a) All products sold as organic in California shall be
35certified by a federally accredited certifying agent, if they are
36required to be certified under the federal act.

37(b) Product shall be sold as organic only in accordance with
38this chapter.

39(c) A certification organization shall be accredited by the USDA
40as provided in the NOP.

P14   1

begin insert46026.end insert  

Materials allowed in organic production and processing
2are specified in the Federal Organic Standards (7 C.F.R. Sec. 205
3et seq.). Organic input materials for organic production are
4regulated under Chapter 5 (commencing with Section 14501) of
5Division 7.

6 

7Article begin insert4.end insert  Fees and Penalties
8

 

9

begin insert46031.end insert  

(a) The secretary, in consultation with the advisory
10committee, shall establish a registration fee for producers,
11handlers, and retail food establishments that are exempt from
12certification under the NOP but who are required to register with
13the state pursuant to Section 46021. The registration fee shall not
14exceed the reasonable costs of enforcement activities as authorized
15under Section 46012 on operations exempt from certification.

16(b) The secretary, in consultation with the advisory committee,
17shall establish a registration fee for certifying agents operating
18within the state. The registration fee shall not exceed the
19reasonable costs of enforcement and monitoring of certifying
20agents.

21(c) The secretary, in consultation with the advisory committee,
22may establish an annual fee for the purposes of funding the
23activities authorized under this act. Any fee established shall not
24exceed the following fee schedule for gross annual organic sales
25amounts:

26

 

begin insert

Gross Annual Organic Sales

end insert
begin insert

Annual Fee Amount

end insert
begin insert

$ 0 - 250,000

end insert
begin insert

$100

end insert
begin insert

$ 250,001 - 500,000

end insert
begin insert

$450

end insert
begin insert

$ 500,001 - 1,000,000

end insert
begin insert

$750

end insert
begin insert

$ 1,000,001 - 2,500,000

end insert
begin insert

$1,000

end insert
begin insert

$ 2,500,001 - 5,000,000

end insert
begin insert

$1,500

end insert
begin insert

$ 5,000,001 - 15,000,000

end insert
begin insert

$2,000

end insert
begin insert

$ 15,000,001 25,000,000

end insert
begin insert

$2,500

end insert
begin insert

$ 25,000,001 and above

end insert
begin insert

$3,000

end insert

 

37

begin insert46032.end insert  

(a) The fees and penalties collected by the secretary
38and county agricultural commissioners pursuant to this chapter
39shall be deposited in the Department of Food and Agricultural
P15   1Fund and, upon appropriation by the Legislature, shall be
2expended solely to fulfill the activities authorized under this
3chapter.

4(b) By regulation, the secretary may establish procedures to
5allow any fees and penalties collected by a county agricultural
6commissioner pursuant to Section 46047 and any other penalties
7collected by a county agricultural commissioner pursuant to this
8chapter to be paid directly to the county agricultural commissioner
9and expended to fulfill the responsibilities of the county
10agricultural commissioner, as specified in this chapter.

11(c) Any person subject to this chapter that does not pay the
12registration fee within 10 days of the date on which the fee is due
13and payable shall pay a penalty of 10 percent of the total amount
14determined to be due plus interest at the rate of 1.5 percent per
15month on the unpaid balance.

16

begin insert46033.end insert  

(a) Any fee established and collected pursuant to this
17chapter shall not exceed the department’s cost or the county
18agricultural commissioner’s costs, as the case may be, of
19regulating and enforcing the provisions of this chapter related to
20the function for which the fee is established.

21(b) The fees established and collected pursuant to this chapter
22may be expended, under the advisement of the advisory committee,
23for activities authorized under this chapter, including assisting
24operations in achieving certification, conducting education and
25outreach, entering research and development partnerships, and
26addressing production or marketing obstacles to the growth of the
27organic sector.

28 

29Article begin insert5.end insert  Enforcement
30

 

31

begin insert46041.end insert  

(a) This chapter shall apply notwithstanding any other
32law that is inconsistent with this chapter. Nothing in this chapter
33is intended to repeal any other law consistent with this chapter.

34(b) Article 14 (commencing with Section 43031) of Chapter 2
35applies to any product that is represented as organically produced
36by any person who is not registered as required by this chapter or
37any product that is not in compliance with this chapter or the NOP.

38(c) The secretary, county agricultural commissioners, and the
39director shall be considered enforcing officers for purposes of
40those provisions of law under their respective jurisdiction.

P16   1(d) Any person may file a complaint with the director concerning
2suspected noncompliance with this chapter or Article 7
3(commencing with Section 110810) of Chapter 5 of Part 5 of
4Division 104 of the Health and Safety Code by a person under the
5enforcement jurisdiction of the director, as provided in Section
646000.

7(e) The director shall, to the extent funds are available, establish
8procedures for handling complaints, including provision of a
9written complaint form, and procedures for commencing an
10investigation within three working days after receiving a complaint
11regarding fresh food, and within seven working days for other
12food, and completing an investigation and reporting findings and
13enforcement action taken, if any, to the complainant within 60
14days thereafter.

15(f) The director may establish minimum information
16 requirements to determine the verifiability of a complaint, and
17may provide for rejection of a complaint that does not meet the
18requirements. The director shall provide written notice of the
19reasons for rejection to the person filing the complaint.

20(g) The director shall carry out the functions and objectives of
21this chapter and Article 7 (commencing with Section 110810) of
22Chapter 5 of Part 5 of Division 104 of the Health and Safety Code,
23to the extent funds are available for those purposes.

24

begin insert46042.end insert  

At the request of a county agricultural commissioner,
25the district attorney for that county may bring an action to enforce
26this act within the enforcement jurisdiction of that commissioner.

27

begin insert46043.end insert  

(a) Any person may file a complaint with the secretary
28concerning suspected noncompliance with this act, as provided in
29regulations adopted by the NOP.

30(b) The secretary shall, to the extent funds are available,
31establish procedures for handling complaints, including provision
32of a written complaint form, and procedures for commencing an
33investigation within three working days after receiving a complaint
34regarding fresh food, and within seven working days for other
35products, and completing an investigation and reporting findings
36and enforcement action taken, if any, to the complainant within
3760 days thereafter.

38(c) The secretary may establish minimum information
39requirements to determine the verifiability of a complaint, and
40may provide for rejection of a complaint that does not meet the
P17   1requirements. The secretary shall provide written notice of the
2reasons for rejection to the person filing the complaint.

3(d) The secretary shall carry out the functions and objectives
4of this chapter to the extent funds are available for those purposes.

5(e) The complaint process in this state must also meet all the
6complaint process outlined in regulations adopted by the NOP.

7

begin insert46044.end insert  

(a) A county agricultural commissioner may, at any
8time, initiate a notice and hearing process to determine whether
9a violation of these provisions has occurred. The hearing process
10to determine if a violation has occurred may include a review of
11the actions or records of all of the following:

12(1) The organic registrant.

13(2) A family member, employee, or any other person authorized
14to act on behalf of the registrant.

15(3) Any other person whose actions may have resulted in the
16violation.

17(b) The notice of hearing shall be on a form approved by the
18 secretary that contains all of the following:

19(1) The reasons why the hearing is being held.

20(2) A warning that failure to participate may result in other
21adverse actions or may be considered to be admission to a possible
22violation.

23(3) A hearing date, time, and location of the hearing.

24(4) The secretary or county agricultural commissioner may,
25upon determination that a violation has been made in accordance
26with subdivision (a), take any corrective action as specified in this
27act.

28

begin insert46045.end insert  

(a) Any person may appeal to the secretary for a
29hearing if aggrieved by either of the following actions or decisions:

30(1) Denial of any registration.

31(2) Revocation of any registration.

32(b) The appeal shall be submitted to the secretary in writing
33within 30 days of the date the action, or the letter proposing the
34action. The secretary’s proceeding shall, insofar as practicable,
35comply with the provisions of the Administrative Procedure Act
36(Chapter 5 (commencing with Section 11500) of Part 1 of Division
373 of Title 2 of the Government Code), except that a department
38hearing officer may be used.

P18   1

begin insert46046.end insert  

As provided for in regulations adopted by the NOP,
2the action proposed by a NOP accredited certifier against a client
3may be appealed to the secretary for mediation.

4

begin insert46047.end insert  

(a) In lieu of prosecution, the secretary or a county
5agricultural commissioner may levy an administrative penalty
6against any person under the enforcement jurisdiction of the
7secretary as provided in Section 46000 who violates this act, or
8any regulation adopted pursuant thereto or pursuant to this
9chapter, or regulations adopted by the NOP, in an amount not
10more than five thousand dollars ($5,000) for each violation. The
11amount of the penalty assessed for each violation shall be based
12upon the nature of the violation, the seriousness of the effect of
13the violation upon effectuation of the purposes and provisions of
14this chapter and the impact of the penalty on the violator, including
15the deterrent effect on future violations.

16(b) Notwithstanding the penalties prescribed in subdivision (a),
17if the secretary or county agricultural commissioner finds that a
18violation was not intentional, the secretary or county agricultural
19commissioner may levy an administrative penalty of not more than
20two thousand five hundred dollars ($2,500) for each violation.

21(c) For a first offense, in lieu of an administrative penalty as
22prescribed in subdivision (a) or (b), the secretary or county
23agricultural commissioner may issue a notice of violation if he or
24she finds that the violation is minor.

25(d) A person against whom an administrative penalty is
26proposed shall be afforded an opportunity for a hearing before
27the secretary or county agricultural commissioner, upon request
28made in writing within 30 days after the issuance of the notice of
29penalty. At the hearing, the person shall be given the right to review
30 the secretary’s or commissioner’s evidence of the violation and
31the right to present evidence on his or her own behalf. If no hearing
32is requested, the administrative penalty shall constitute a final and
33nonreviewable order.

34(e) If a hearing is held, review of the final decision of the
35secretary or county agricultural commissioner may be requested
36in writing by any person, pursuant to Section 1094.5 of the Code
37of Civil Procedure within 30 days of the date of the final order of
38the secretary or county agricultural commissioner.

39(f) An administrative penalty levied by the secretary pursuant
40to this section may be recovered in a civil action brought in the
P19   1name of the state. An administrative penalty levied by a county
2agricultural commissioner pursuant to this section may be
3recovered in a civil action brought in the name of the county. After
4the exhaustion of the review procedures provided in this section,
5a county agricultural commissioner, or his or her representative,
6may file a certified copy of a final decision of the commissioner
7that directs the payment of an administrative penalty and, if
8applicable, a copy of any order that denies a petition for a writ of
9administrative mandamus with the clerk of the superior court of
10any county. Judgment shall be entered immediately by the clerk
11in conformity with the decision or order. Pursuant to Section 6103
12of the Government Code, no fees shall be charged by the clerk of
13the superior court for the performance of any official service
14required in connection with the entry of judgment pursuant to this
15section.

16(g) The secretary shall maintain in a central location, and make
17publicly available for inspection and copying upon request, a list
18of all administrative penalties levied by the secretary and by each
19county agricultural commissioner within the past five years,
20including the amount of each penalty, the person against whom
21the penalty was levied, and the nature of the violation. Copies of
22this list shall also be available by mail, upon written request and
23payment of a reasonable fee, as set by the secretary.

24

begin insert46048.end insert  

The secretary and the county agricultural
25commissioners may conduct a program of spot inspections to
26determine compliance with this act.

27

begin insert46049.end insert  

(a) It is unlawful for any person to sell, offer for sale,
28advertise, or label any product in violation of this act.

29(b) Notwithstanding subdivision (a), a person engaged in
30business as a handler, distributor, or retailer of food who in good
31faith sells, offers for sale, labels, or advertises any product in
32reliance on the representations of a producer, processor, or other
33distributor that the product may be sold as organic, shall not be
34found to violate this act unless the distributor either:

35(1) Knew or should have known that the product could not be
36sold as organic.

37(2) Was engaged in producing or processing the product.

38(3) Prescribed or specified the manner in which the product
39was produced or processed.

P20   1

begin insert46050.end insert  

(a) It is unlawful for any person to certify any product
2in violation of this act.

3(b) It is unlawful for any person to certify a product or company
4as organic unless duly registered as a certification organization
5pursuant to this act.

6(c) It is unlawful for any person to willfully make a false
7statement or representation, or knowingly fail to disclose a fact
8required to be disclosed, in registration for a certification
9organization pursuant to this act.

10

begin insert46051.end insert  

(a) It is unlawful for any person to produce or handle
11any product sold as organic unless duly registered pursuant to
12Section 46021.

13(b) It is unlawful for any person to willfully make a false
14statement or representation, or knowingly fail to disclose a fact
15required to be disclosed, in registration pursuant to Section 46021.

16

begin insert46052.end insert  

It is unlawful for any person to forge, falsify, fail to
17retain, fail to obtain, or fail to disclose records pursuant to Section
1846055.

19

begin insert46053.end insert  

(a) It is unlawful for any person to advertise, label, or
20otherwise represent that any fertilizer or pesticide chemical may
21be used in connection with the production, processing, or
22distribution of products sold as organic if that fertilizer or pesticide
23chemical contains a prohibited material.

24(b) It is unlawful for any person to refuse to submit for
25inspection.

26(c) It is unlawful for any person to mislabel any organic product.

27(d) It is unlawful for any person to alter any organic registration
28form.

29(e) It is unlawful for any person to alter any certification
30document.

31(f) It is unlawful for any person to falsify any document.

32(g) It is unlawful for any person to remove a hold off sale or
33disposal order from any lot of product.

34(h) It is unlawful to use the term “transitional organic” in this
35state.

36

begin insert46054.end insert  

No food or product may be advertised or labeled as
37“organic when available” or similar terminology that leaves in
38doubt whether the food is being sold as organic.

P21   1

begin insert46055.end insert  

All persons who produce, handle, or retail products
2that are sold as organic shall keep accurate and specific records
3of the following as applicable:

4(a) The quantity harvested from each field or management unit,
5the size of the field or management unit, the field number, and the
6date of harvest.

7(b) Unless the livestock, fowl, or fish was raised or hatched by
8the producer, the name and address of all suppliers of livestock,
9fowl, or fish and the date of the transaction.

10(c) For each field or management unit, all substances applied
11to the crop, soil, growing medium, growing area, irrigation or
12post harvest wash or rinse water, or seed, the quantity of each
13substance applied, and the date of each application. All substances
14shall be identified by brand name, if any, and by source.

15(d) All substances administered and fed to the animal, including
16all feed, medication and drugs, and all substances applied in any
17area in which the animal, milk, or eggs are kept, including the
18quantity administered or applied, and the date of each application.
19All substances shall be identified by brand name, if any, and by
20source.

21(e) (1) Invoices, bills of lading or other documents that show
22transfer of title of certified organic products shall indicate the
23product is “organic” or “certified organic” and, if applicable,
24the California registration number of the person transferring the
25product.

26(2) Any person selling product that is exempt or excluded from
27certification under NOP rules, must follow the requirements of
28Section 205.101 of Title 7 of the Code of Federal Regulations.

29(f) All substances applied to the product or used in or around
30any area where product is kept including the quantity applied and
31the date of each application. All pesticide chemicals shall be
32identified by brand name, if any, and by source.

33(g) Except when sold to the consumer, the name and address
34of all persons, to whom or from whom the product is sold,
35purchased or otherwise transferred, the quantity of product sold
36or otherwise transferred, and the date of the transaction.

37

begin insert46056.end insert  

(a) Notwithstanding any other law, any producer,
38handler, processor, or retailer of product sold as organic shall
39immediately make available for inspection by, and shall upon
40request, within 72 hours of the request, provide a copy to, the
P22   1secretary, the Attorney General, any prosecuting attorney, any
2governmental agency responsible for enforcing laws related to the
3production or handling of products sold as organic, of any record
4required to be kept under this section for purposes of carrying out
5this chapter. Records acquired pursuant to this chapter shall not
6be public records as that term is defined in Section 6252 of the
7Government Code and shall not be subject to Chapter 3.5
8(commencing with Section 6250) of Division 7 of Title 1 of the
9Government Code.

10(b) Upon written request of any person that establishes cause
11for the request, the secretary shall obtain and provide to the
12requesting party within 10 working days of the request a copy of
13any of the following records required to be kept under this chapter
14that pertain to a specific product sold or offered for sale, and that
15identify substances applied, administered, or added to that product,
16except that financial information about an operation or transaction,
17information regarding the quantity of a substance administered
18or applied, the date of each administration or application,
19information regarding the identity of suppliers or customers, and
20the quantity or price of supplies purchased or products sold shall
21be removed before disclosure and shall not be released to any
22person other than persons and agencies authorized to acquire
23records under subdivision (a):

24(1) Records of a producer, as described in Section 46056.

25(2) Records of a handler, as described in Section 46056, records
26of previous handlers, if any, and producers as described in Section
2746056 without identifying the previous handlers or producers,
28and, if applicable, records obtained as required in this act.

29(3) (A) Records of a retailer, as described in Section 46056,
30records of previous handlers, if any, and producers as described
31in Section 46056 without identifying the previous processors,
32handlers, or producers, and, if applicable, records obtained as
33required in subdivision (d). This subdivision shall be the exclusive
34means of public access to records required to be kept by producers,
35processors, handlers, and retailers under this chapter.

36(B) A person required to provide records pursuant to a request
37under this subdivision, may petition the secretary to deny the
38request based on a finding that the request is of a frivolous or
39harassing nature. The secretary may, upon the issuance of this
40finding, waive the information production requirements of this
P23   1subdivision for the specific request for information that was the
2subject of the petition.

3(c) Information specified in subdivision (b) that is required to
4be released upon request shall not be considered a “trade secret”
5under Section 110165, Section 1060 of the Evidence Code, or the
6Uniform Trade Secrets Act (Title 5 (commencing with Section
73426) of Part 1 of Division 4 of the Civil Code).

8(d) The secretary may charge the person requesting records a
9reasonable fee to reimburse himself or herself or the source of the
10records for the cost of reproducing the records requested.

11(e) The secretary shall not be required to obtain records not in
12his or her possession in response to a subpoena. Before releasing
13records required to be kept pursuant to this act in response to a
14subpoena, the secretary shall delete any information regarding
15the identity of suppliers or customers and the quantity or price of
16supplies purchased or products sold.

end insert
17begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 110810 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
18amended to read:end insert

19

110810.  

This articlebegin insert and Chapter 10 (commencing with Section
2046000) of Division 17 of the Food and Agricultural Codeend insert
shall be
21begin delete known,end deletebegin insert knownend insert and may be citedbegin delete as,end deletebegin insert asend insert the California Organic
22begin delete Products Act of 2003.end deletebegin insert Food and Farming Act.end insert

23begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 110812 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
24amended to read:end insert

25

110812.  

Thebegin delete directorend deletebegin insert director, in consultation with the
26Secretary of Food and Agriculture,end insert
shall enforce regulations
27promulgated by the National Organic Program (Section 6517 of
28the federal Organic Foods Production Act of 1990 (7 U.S.C. Sec.
296501 et seq.)), provisions of this article, and Chapter 10
30(commencing with Section 46000) of Division 17 of the Food and
31Agricultural Code.

32begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 110815 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
33repealed.end insert

begin delete
34

110815.  

Unless otherwise defined pursuant to the National
35Organic Program, the following words and phrases, when used in
36this article, shall have the following meanings:

37(a)  “Animal food” means any food intended to be fed to any
38household animal, including, but not limited to, cats, or dogs and
39other carnivores. It does not include “feed” intended for livestock
P24   1as defined in Section 205.2 of Title 7 of the Code of Federal
2Regulations.

3(b)  “Director” means the Director of the Department of Health
4Services.

5(c)  “Enforcement authority” means the governmental unit with
6primary enforcement jurisdiction, as provided in Section 110930.

7(d)  “Handle” means to sell, process, or package agricultural
8products.

9(e)  “Handler” means any person engaged in the business of
10handling agricultural products, but does not include final retailers
11of agricultural products that do not process agricultural products.

12(f)  “Handling operation” means any operation or portion of an
13operation, except final retailers of agricultural products that do not
14process agricultural products, that (1) receives or otherwise acquires
15agricultural products and (2) processes, packages, or stores
16 agricultural products.

17(g)  “NOP” means the National Organic Program established
18pursuant to the Organic Foods Production Act of 1990 (7 U.S.C.
19Sec. 6501 et seq.) and the regulations adopted for implementation.

20(h)  “Processing” means cooking, baking, heating, drying,
21mixing, grinding, churning, separating, extracting, cutting,
22fermenting, eviscerating, preserving, dehydrating, freezing, or
23otherwise manufacturing, and includes packaging, canning, jarring,
24or otherwise enclosing food in a container.

25(i)  “Prohibited materials” means any materials prohibited under
26regulations adopted by (Section 6517 of the federal Organic Foods
27Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.)). For products
28not covered by the National Organic Program, prohibited materials
29are anything not on the approved list.

30(j)  “Secretary” means the Secretary of the California
31Department of Food and Agriculture.

32(k)  “Sold as organic” means any use of the terms “organic,”
33“organically grown,” or grammatical variations of those terms,
34whether orally or in writing, in connection with any product grown,
35handled, processed, sold, or offered for sale in this state, including,
36but not limited to, any use of these terms in labeling or advertising
37of any product and any ingredient in a multi-ingredient product.

38(l)  “USDA” means the United States Department of Agriculture.

end delete
39begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 110815 is added to the end insertbegin insertHealth and Safety Codeend insertbegin insert,
40to read:end insert

begin insert
P25   1

begin insert110815.end insert  

The definitions set forth in Section 46001 of the Food
2and Agricultural Code shall apply to this article.

end insert
3begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 110860 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
4amended to read:end insert

begin delete
5

110860.  

(a)  A registered certification organization shall no
6less often than, at the end of each calendar quarter, prepare a list
7by name of all persons whose production or processing of food is
8certified or pending certification by the certification organization.
9This list shall be filed with the department or the Department of
10Food and Agriculture, as applicable, by the certification
11organization and made publicly available within 30 days after the
12end of each quarter.

13(b)  

end delete
14begin insert

begin insert110860.end insert  

end insert

A registered certification organization or a federally
15accredited certification organization shall, at least annually,
16physically inspect the premises where the food to be certified is
17produced and processed. The inspection shall include an
18examination of recordkeeping.

19begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 110870 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
20repealed.end insert

begin delete
21

110870.  

Only products that have been handled and processed
22in accordance with this article may be certified by a registered
23certification organization.

end delete
24begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 110875 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
25repealed.end insert

begin delete
26

110875.  

(a)  Every person engaged in this state in the
27processing or handling of processed products for human
28consumption, including dietary supplements, alcoholic beverages,
29and fish or seafood sold as organic (except for processors and
30handlers of processed meat, fowl, or dairy products and retailers
31that are engaged in the processing or handling of products sold as
32organic), and every person engaged in the processing or handling
33of animal food and cosmetics sold as organic, shall register with
34the director, and shall thereafter annually renew the registration
35unless no longer so engaged. Handlers of processed food products
36that are registered with the department pursuant to Article 2
37(commencing with Section 110460) shall register under this section
38in conjunction with the annual renewal of their registration pursuant
39to that article. Handlers of organic products that are required to be
40registered to manufacture, pack, or hold processed food pursuant
P26   1to Article 2 (commencing with Section 110460) of Chapter 5 of
2Part 5 of Division 104, licensed to bottle, vend, haul, or process
3water pursuant to Article 12 (commencing with Section 11070) of
4Chapter 5 of Part 5 of Division 104, certified to process or handle
5fresh or frozen seafood or fresh or frozen raw shellfish pursuant
6to Chapter 5 (commencing with Section 112150) of Part 6 of
7Division 104, licensed to operate a cold storage facility pursuant
8to Chapter 6 (commencing with Section 112350) of Part 6 of
9Division 104, licensed to process low acid canned foods pursuant
10to Chapter 8 (commencing with Section 112650) of Part 6 of
11Division 104, licensed to manufacture olive oil pursuant to Chapter
129 (commencing with Section 112875) of Part 6 of Division 104,
13and licensed or registered to process or hold pet food in California
14pursuant to Chapter 10 (commencing with Section 113025) of Part
156 of Division 104, shall possess a valid registration or license in
16order to obtain a valid organic registration for the same facility
17under this section. All others required to register under this
18subdivision shall register within 30 days of forms being made
19available for this purpose. Any processor or handler of processed
20products required to register under this subdivision that does not
21pay the registration fee required by subdivision (c) within 30 days
22of the date on which the fee is due and payable shall pay a penalty
23of 112 percent per month on the unpaid balance.

24(b)  Registration shall be on a form provided by the director and
25shall be valid for a period of one calendar year from the date of
26validation of the completed registration form. The director shall
27make registration forms available for this purpose. The information
28provided on the registration form shall include all of the following:

29(1)  The nature of the registrant’s business, including the specific
30commodities and quantities of each commodity that is handled
31and sold as organic.

32(2)  The total current annual organic gross sales, or if not selling
33the product, the total current gross annual revenue received from
34processing, packaging, repackaging, labeling, or otherwise handling
35organic products for others, in dollars.

36(3)  The names of all certification organizations and
37governmental entities, if any, providing certification to the
38registrant pursuant to this article and the regulations adopted by
39the NOP.

P27   1(4)  Sufficient information, under penalty of perjury, to enable
2the director to verify the amount of the registration fee to be paid
3in accordance with subdivision (c).

4(c)  To the extent feasible, the director shall coordinate the
5registration and fee collection procedures of this section with
6similar licensing or registration procedures applicable to registrants.
7When coordinating the organic registration with other required
8registrations or licenses identified in subdivision (a), the expiration
9date shall be the same expiration date as the valid license or
10registration. For persons that hold two-year licenses or registrations
11pursuant to subdivision (a), the organic registration shall be
12renewed annually using the same expiration month and day as the
13two-year license or registration.

14(d)  A registration form shall be accompanied by payment of a
15nonrefundable registration fee payable to the department by
16handlers which shall be based on annual gross sales of organic
17product or annual revenue received from processing, packaging,
18repackaging, labeling, or otherwise handling organic product for
19others, by the registrant in the calendar year that precedes the date
20of registration. If no sales or revenue were made in the preceding
21year, then based on the expected sales or revenue during the 12
22calendar months following the date of registration. Unless specified
23elsewhere, the fee is based according to the following schedule:

`
25

 

Gross Annual Sales or
Revenue

Annual Registration
Fee

$0-$5,000

$ 50

$5,001-$50,000

$100

$50,001-$125,000

$200

$125,001-$250,000

$300

$250,001-$500,000

$400

$500,001-$1,500,000

$500

$1,500,001-$2,500,000

$600

$2,500,001-and above

$700

P27  36

 

37(1)  Any handler that does not take possession or title of the
38product but arranges for the sale of the product shall register and
39pay one hundred dollars ($100) per year.

P28   1(2)  Any person that only provides temporary storage for seven
2days or less, or only provides transportation for organic product
3and does not handle the processed packaged product, does not
4have to register.

5(3)  Any person that hires any other person to custom pack,
6repack, or label organic products shall register and pay a fee based
7on the total annual sales of products custom packed, repacked, or
8labeled for them as outlined in the chart above.

9(e)  Revenue received pursuant to this section shall be deposited
10in the Food Safety Fund created pursuant to Section 110050.

11(f)  The director shall reject a registration submission that is
12incomplete or not in compliance with this article and regulations
13promulgated by the NOP.

14(g)  The director shall provide a validated certificate to the
15registrant.

16(h)  Registration forms shall be made available to the public for
17inspection and copying at the main office of the department. Copies
18of registration forms shall also be made available by mail, upon
19written request and payment of a reasonable fee, as determined by
20 the director. Registration information regarding quantity of
21products sold and gross sales volume in dollars shall be deleted
22prior to public inspection and copying and shall not be released to
23any person except other employees of the department, the
24Department of Food and Agriculture, a county agricultural
25commissioner, the Attorney General, any prosecuting attorney, or
26any government agency responsible for enforcing laws related to
27the activities of the person subject to this part.

28(i)  A registrant shall immediately notify the director of any
29change in the information reported on the registration form and
30shall pay any additional fee owed if that change results in a higher
31fee owed than previously paid.

32(j)  The director in consultation with the California Organic
33Products Advisory Committee, may suspend the registration
34program set forth in this section if the director determines that
35income derived from registration fees is insufficient to support a
36registration enforcement program.

37(k)  A registration is considered legal and valid until revoked,
38suspended, or until the expiration of the registration.

39( l)  The registration revocation process must be in conjunction
40with other provisions of this article. The director can initiate the
P29   1revocation process for failure to comply with this article or any
2part of the regulations adopted pursuant to the NOP. Any person
3against whom the action is being taken shall have the opportunity
4to appeal the action and be afforded the opportunity to be heard
5in an administrative appeal. This appeal can be administered by
6either the state or county agricultural commissioner’s office.

7(m)  When the registration fee is not paid within 60 days from
8the expiration date the account may be considered closed and the
9registration voided. A notification will be sent to the registrant and
10the certifier will notify them that they are no longer able to market
11products as organic until the account is paid in full.

12(n)  Any registration that is more than 60 days late will be
13considered invalid and it is a violation if product is sold as organic.

end delete
14begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 110875 is added to the end insertbegin insertHealth and Safety
15Code
end insert
begin insert, to read:end insert

begin insert
16

begin insert110875.end insert  

A person certified under the National Organic
17Program shall be deemed registered for the purposes of the state
18organic program, and shall not be required to separately register
19with the state.

end insert
20begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 110920 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
21amended to read:end insert

22

110920.  

begin deleteNo end deletebegin insert(a)end insertbegin insertend insertbegin insertThe department shall use funds appropriated
23by the Legislature in the annual Budget Act from fees collected
24pursuant to Section 46031 of the Food and Agricultural Code to
25fulfill its obligations under this article.end insert

26begin insert(b)end insertbegin insertend insertbegin insertNo end insertfee established and collected pursuant to this article shall
27exceed the department’s costs of regulating and enforcing the
28provisions of this article related to the function for which the fee
29is established.

30begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 110925 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
31amended to read:end insert

32

110925.  

Any fees and civil penalties collected pursuant to this
33article shall be deposited inbegin delete the General Fundend deletebegin insert a separate organic
34food safety subaccount of the Food Safety Accountend insert
and, upon
35appropriation by the Legislature, shall be expended to fulfill the
36responsibilities of the director as specified in this article.

37begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 110958 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
38repealed.end insert

begin delete
39

110958.  

Annually, the director shall compile and publish and
40submit to the California Organic Products Advisory Committee a
P30   1summary of information collected under Section 110875, including,
2but not limited to, the following:

3(a)  The total number of registrations received under this section.

4(b)  The total number and quantity of each type of product sold
5as organic by all registrants combined.

6(c)  The total annual organic gross sales volume or revenue of
7all registrants combined, and the median gross annual organic sales
8or revenue of all registrants.

9(d)  The names of all registrants.

10(e)  The number of registrants in each of the following ranges
11of annual gross sales volume:

12(1)  $0-$5,000

13(2)  $5,001-$25,000

14(3)  $25,001-$50,000

15(4)  $50,001-$125,000

16(5)  $125,001-$250,000

17(6)  $250,001-$500,000

18(7)  $500,001-$750,000

19(8)  $750,001-$1,000,000

20(9)  $1,000,001-$1,500,000

21(10)  $1,500,001-$2,500,000

22(11)  $2,500,001-$10,000,000

23(12)  $10,000,001-$30,000,000

24(13)  $30,000,001 and above.

25(f)  The report published pursuant to this section shall present
26the required information in an aggregate form that preserves the
27confidentiality of the proprietary information of individual
28registrants.

end delete
29begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 110958 is added to the end insertbegin insertHealth and Safety
30Code
end insert
begin insert, to read:end insert

begin insert
31

begin insert110958.end insert  

(a) Annually, the department shall compile, publish,
32and submit to the California Organic Products Advisory Committee
33a summary of the following information:

34(1) Enforcement actions taken by the department in that fiscal
35year.

36(2) Accounting revenues received and expended by the
37department in implementing this article.

38(b) The information shall be presented in an aggregate form
39that preserves the confidentiality of proprietary information of
40individual businesses.

end insert
P31   1begin insert

begin insertSEC. 16.end insert  

end insert
begin insert

If the Commission on State Mandates determines that
2this act contains costs mandated by the state, reimbursement to
3local agencies and school districts for those costs shall be made
4pursuant to Part 7 (commencing with Section 17500) of Division
54 of Title 2 of the Government Code.

end insert
begin delete6

SECTION 1.  

Section 46000 of the Food and Agricultural Code
7 is amended to read:

8

46000.  

(a) This chapter shall be known, and may be cited as,
9the California Organic Products Act of 2003.

10(b) The secretary and county agricultural commissioners, under
11the supervision and direction of the secretary, shall enforce
12regulations adopted by the National Organic Program (NOP)
13(Section 6517 of the federal Organic Foods Production Act of 1990
14(7 U.S.C. Sec. 6501 et seq.)), and Article 7 (commencing with
15Section 110810) of Chapter 5 of Part 5 of Division 104 of the
16Health and Safety Code and this act applicable to any person selling
17products as organic.

end delete


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